Answer:
6 Cookies {or any >5, <7)
Explanation:
Theory of Comparative Advantage states : A person/ economy having lesser opportunity cost (i.e other good sacrifised) to attain a good, should sell it to - other person/ economy having the good's higher opportunity cost.
Trade is beneficial if the terms of trade exchange ratio is better than own account production sacrifise ratio.
Bill can bake a pie with opportunity cost of 5 cookies. Fred can bake a pie with opportunity cost of 7 cookies. Bill has less opportunity cost of Pie in terms of Cookies, so should sell it to Fred.
The trade between them will be beneficial only if : both of them gain from trade - i.e get a good at lower opportunity cost than their own. Fred getting 1 pie per 6 cookies is better than his own sacrifise ratio i.e 1pie : 7 cookies. Bill getting 1 cookie per 0.16 (1/6) pie is better than his own sacrifise ratio i.e 1cookie : 0.25pie (1/5)
Answer:
The amount of sales will be reported in the 20X1 consolidated income statement is $58,000
Explanation:
The computation of the amount of sales is shown below:
= Value of the entire inventory sold - purchased inventory + sale inventory
= $58,000 - $45,000 + $45,000
= $58,000
The purchased inventory + sale inventory would reflect the intra sales of the company which told that the sales are made within the company.
Answer:
Debit cost of goods sold $40,000
Explanation:
As with the details of inventory we have:
Opening value of inventory = $50,000
Purchases = $100,000
Thus, total inventory = $150,000
On the closing date we have the balance of inventory in hand = $110,000
Therefore, cost of goods sold = Total inventory - Closing
= $150,000 - $110,000 = $40,000
Cost of goods sold is an expense, and shall be debited.
Answer:
The statement is: True.
Explanation:
Being a manager implies handling groups of people with diverse cultures, experiences, and personalities. To perform a proficient work, executives should have a well-defined method of working but be able to adapt it according to their subordinates and the situation the firm is facing. In some cases, their ego will have to be left behind to reach the company's goals.
